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Monthly Business Review
OF THE
FEDERAL RESERVE BANK
OF DALLAS
(Compiled D'ecember 15, 1937)
~~In~e~2~2~'~~O~.=1=1==================~D==a=1l=a=s=,=T=e=x=a==s,==J=a=n=u=a=r=Y==1=,=1=9=3=8==========T=h;=s=co=P=Y=is=,=.e=le=as=c=d=£o=r=p=u=b-==D==e=c=.=3=1
~~~~~~~=========================================================l~ic~at=io=n=i=n=a=f~=r='n=oo=n~p~n~pe=r=8-=========
DISTRICT SUMMARY
------------------------------------------------ month and about double
the volume in November, 1936,
reflecting chiefly the larger awards for public works and
public utility construction. Residential building continued
Peroentage ohango from
to decline, the November awards being in smaller volume
Novomber
Bank d b'
1937
Nov., 1936 Oot., 1937
than in any month in nearly two years. The valuation of
D rtl~o'~~ tt individual aocounts (18 cities). .
5849,920,000
+ 9. 8
- 7.8
sdoro1alcs ................ .. .... ...........
+11.6
- 6.6
building permits issued at principal cities decreased seasonat c sa. es (fivo lines) . . . . .. . . .. . ....
+ 3.6
- 11 .9
ally from October to November and was 6 per cent lower
Valuo 0 b . s ,ruotlon contracts awardod
'"'' S'ili,iiii,oOO
+98. 7
+27. 7
- 16 .2
COrnmoroi~I'lr,.nl g pOrmits issued (14 oities) . . . . . . $ 3,339,295
- 5.7
than a year ago.
Com
. fnilures
a, ures (Ii
(numbor)
21
+40 . 0
+ 10.5
D . morclal
bTt· ) ..... . . . .. ... . .
+85.4
.,Iy nvcrngo orude air p~:xl~tio~ (j,~~;olsj.' .' : : :
d~~:~~g
+r~ : ~
Weather conditions during the past thirty days were gen- 4.7
------------------------------------------------- erally favorable for the district's agricultural and livestock
a ~l~hough the downward trend in some lines of business industries. Widespread rains relieved the drouthy conditions
cn Industry continued in November, the level of activity which had prevailed in south Texas and in parts of central~neIhlly was substantially higher than in the corresponding west Texas and added to moisture supplies in other areas.
e Ont of 1936. Department store sales were 12 per cent in However, there is still a deficiency of moisture .i n much of
:cess of those at this time last year, but the larger than northwest Texas, New Mexico, and southern Arizona. The
d ai?nal recession from October to November resulted in a indicated production of cotton was again increased, and on
eline in this bank's adjusted index of department store the basis of the December 1 estimate of the Department of
i~;s, The figure for November was 108.5 per cent of the Agriculture, production in this district is .the largest since
bel' 3-1925 average as compared with 109.8 per cent in Octo- 1926. Small grains have made good growth in most areas.
of . and an average of 107.2 per cent for the first ten months Livestock generally are in good flesh. Shipments of cattle
fa/he. year. In all reporting lines of wholesale trade, except and sheep to market and to other states continued in heavy
fr m Implements, smaller than customary declines occurred volume, but prices showed a further decline.
y om October to November, and the increases in sales over a
Continuing the expansion in evidence since May, the loans
ge~r ago were about equal to or greater than the average of weekly reporting member banks in this district increased
cams for the first eleven months of 1937. The number of moderately in the four weeks ending December 8, but these
,0l1Unercial failures and .t he amount of liabilities involved banks made a further reduction in their investment holdings
Sve~edl~rger than in either the preceding month or the corre- with the result that total loans and investments declined
P n Ing month last year.
$6,572,000. Gross deposits of all member banks averaged
slightly lower in November than in October when they
P .Refle~ting the sharp reduction in allowables, petroleum were at an all-time high level. Member bank reserve bal, 1 O~uctIon in this district declined further in the past six
ances increased somewhat after the middle of November
bee s, and the daily average output at the middle of Decem- and during the first half of December averaged $191,000,Was about 14 per cent under the record high in August. 000, which was about $4.6,000,000 above legal requirements.
ceevbl'theless, it was substantially above the average in De- Federal Reserve note circulation declined fur.ther during the
So m er last year. Stocks of crude oil, however, declined past thirty days. There was a strong demand in this district
rrndewh~t, indicating that demand was slightly in excess of for the December 15 issues of Treasury notes and bonds.
o UctIon.
Total subscriptions aggregated $127,14<2,850, but allotments
th According to the figures of the F_ W. Dodge Corporation, of only $12,750,400 were made. Included in the above
in e alue of construction contracts awarded in this district figures were $2,717,100 in exchange subscriptions, which
overnber was a fourth larger than in the preceding were allotted in full.
THE SITUATION AT A GLANOE
Elovonth Fodornl Resorvo Distriot
r,r
P
N
BUSINESS
l17holesale
Following a counter-to-seasonal decline
in October, distribution of merchandise
gat
in most lines of wholesale trade investied by this bank reflected a decrease somewhat smaller
1'rade
th'an is usual for November. In comparison with a year
ago sales in all lines except farm implements were appreciably higher, the increases being about equal to or larger
than the average gains in the first eleven months. Collections
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
2
MONTHLY BUSINESS REVIEW
--------------------------------------------------------------------------------------------------------
declined seasonally from October to November.
Sales of groceries and hardware at wholesale evidenced
smaller than seasonal declines from October and registered
gains of 13.7 per cent and 17.9 per cent, respectively, over
those in November, 1936. Following sharp declines in
the two preceding months, buying of dry goods held up
better than usual in November and was 4,.6 per cent larger
than the volume in ,t hat month last year. The demand for
farm implements, which had shown a marked expansion
during the preceding four years, dropped off considerably
during the fall and in November sales of reporting firms
were 55.2 per cent below tilie large volume in the corre·
sponding month a year ago. Distribution of drugs reflected
a contra-seasonal increase from October to November and
was 23.7 per cent greater than in November, 1936.
CONDITION OF WHOLESALE TRADE DURING NOVEMBER, 1937
Percentage of inorease or decrease inNet Sales
Net Sales
Stooks
Ratio Nov.
Nov.,1037
Jan.ltoNov.30
Nov. 30,1037
collections
eompared with
eompared with
eompared with
to acoollnts
Nov., Oot.,
same poriod
Nov.30,Oct.31,
outstanding
1936
1937
last yonr
1936 1937
00t.31
Groceries ........ + 13.7 - 7 .0
+14.4
- 6 .6 - 4 .5
84 .8
Dry goods ....... + 4.6 -22. 0
+ 1.1
+ 3.2 - 13 .0
30.1
Farm implements .. -55 .2 -43.7
- 2.5
+22.1 + 2.5
12 .3
Hardware ........ +17.9 - 4 .6
+15.5
+ 4.7 - 8.0
48.4
Drugs· .. .. ....... +23.7 + 1.0
+ 0 .7
+ 13 . 1 +.8
80.5
'Drug data compiled by the United States Department of Commeree. Collection ratio
represents median percentage.
.
Retail buying at department stor~s .in
principal cities of the Eleventh DlstTlct
declined by more than the customary
amount in November, but the dollar volume of sales
was 11.6 per cent in excess of that in the same month last
year. This bank's adjusted index of department store
sales, which makes allowance for average seasonal changes,
stood at 108.5 per cent of the 1923-1925 average in November as compared with a high of 111.9 per cent in August,
and an average of 107.2 per cent in the first ten months of
the year.
Retail
Trade
After showing larger than average increases during the
preceding four months, stocks of merchandise carried by
reporting firms decreased 2.4 per cent during November,
but at the close of the month they were 6.9 per cent greater
than those of a year ago.
Collections on outstanding open accounts reflected a
further appreciable increase during the month, while payments on installment accounts showed little change. The
ratio of November collections to open accounts outstanding
on November 1 was 4,3.5 per cent as against 41.7 per cent
in October, and 4,2.3 per cent in November, 1935.
-------------------------------------------------------------------------------------------------------BUSINESS OF DEPARTMENT STORES
Total sales (percentage):
NovemDer, 1937, oompared with November, 1936 ..... . .... . ........... . ................ .
November, 1037, compared with October, 1937 ................ . . . . ....... ..... ....... .
January 1 to November 30, 1937, compared with same period lasl yonr
.. .• . . ...••.....•.
Credit salos (percentage):
November, 1937, oompared with November, 1036 ..... . .. ... .. . ........................ . .
November, 1937, compared with Ootober, 1037 ... ...... . .......... . '" . ........ , .. .. ..
January I to Novomber 30, 1037, compared with samo period last yonr
... .. ... .. .. . .... .
Stocks on hand at end of month (~roontago):
Novomber, 1937, compared With November, 1936 .. . ..... ... . ....... ......... . .. .... .. .. .
November, 1937, compared with Ootober, 1037 .............................. ... ..... ..
Stock turnover (rato):
Rato of stook turnover in November, 1936 .. . ......... ........................... .... .
Rat<l of stock turnover in November, 1037 ............... . .... ... ...... ... . ...... .. .. .
Rate of stock turnov~r January 1 to November 30, 1036 ...... . .......................... .
Rat<l of stock turnover January 1 to November 30, 1037 ................... . . ............ .
Ratio of November oolleclions to open accounts receivable and outstanding November 1, 1037 . ... .
Ratio of Nov. collections to installment accounts reoeivable and outstanding Nov. I, 1037 .... . . . .
Indexos of departmeat store salos:
~~~§~~;~~e~~t::·3.~
::: : : :: : ~: : : : ~ ~: : ::~ ~:: : : : : : : : :::: : : :
Indexos of department store stocks:
Uonc!iusted-Oetober, 1037 ...... . ...... . ......... . . ...... .. . ................ . . . . .. . .
Unadjusted-November, 1937
. . . __ . . ............................. .. ... . .. ....... . . .
~~~:i:3=g~~e~I;.~~1~a7· .::: :: :::::: :::::::::::::: :::::::::::::::: :: :: :::::: :::::::
Dallas
+ 10.2
- 12.3
+ 7 .6
Houston
+20.3
+ 0.0
+14.1
San Antonio
+11.7
- 4.4
+ 9.3
Olhel'll
+ 8 .6
- 0.1
+10 .3
Total Distriol
+11.6
- 6.0
+ 9.2
+ 3.3
- 13 .0
+ 5.0
=I:170 .8.4
+22.2
+14 .3
- 7.3
+11.3
+13.8
- 9.2
+11.3
+16 .•
- 7.0
+11.8
+ 9 .0
-1.4
+ 1.8
.7
+15.0
.4
--
+ 6.3
- 5.3
+ 6.9
- 2.4
.32
.31
3 .64
3.34
43.8
17.0
.27
.28
2.87
2 .09
40 .2
0.5
.28
.31
3.10
3 .01
46.4
.6
3.8
.29
.31
3.42
3.21
44 .4
13 .3
.24
.24
2.06
2.47
41.6
18.4
.28
.29
3 .18
3.03
43 .5
16.1
140.6
129.3
116.2
109.6
127 .6
110.0
111.0
00 .9
114 .1
130 .2
109.7
lll.a
101.8
102.1
00 .9
88.8
124.1'
121.6'
109.8'
108.6'
77 .9
77.3
69.6
70 .9
76 .0
74 .3
65.2
66 .8
49.6
48 .6
42.8
42.3
62.4
61.8
56.2
55.7
76.2
74.8
67 .4
66. 8
AGRICULTURE
With unusually favorable weather prevailing during the fall, most farmers in
this district have completed the harvesting of 1937 crops and have made fair to good progress with
winter plowing operations. Widespread rains in recent
weeks, which effectively broke the drouth in south Texas,
provided an ample supply of moisture for current needs :in
all sections of the district except northwest Texas, New
Mexico, and Arizona where rainfall was light.
The seeding of winter wheat and other small grains has
been virtually completed and plants have made good growth
in most areas.
In its final estimate the Department of Agriculture placed
Worth
8 .0
9 .8
6.2
+ 17.4
- 11.6
+11.5
• Revised serles
Crop Conditions
Fort
+
+
--
the production of cotton in Texas at 5,230,000 bales, which
is 180,000 bales above the November forecast. The latest
estimate compares with 2,933,000 bales produced in 193,6
and a 1928-1932 average harvest of 4,580,000 bales. ThIS
year's production has been exceeded in only two year s--:,
1926 and 1931--and the per acre yield of 198 pounds IS
the largest since 1912. The Department of Agriculture stated
that the increase in indicated production during November
is attributable to the unprecedented yields in northwes~
Texas. In that area conditions have been almost idea
throughout the growing season and have resulted in a production about two and one-half times as large as the 1928'
1932 average production.
-----------------------~==~==~~~==~------------------~
MONTHLY BUSINESS REVIEW
S
-------------------~~------------------------------------TEXA S-PRODUCTION OF COTTON BY DISTRICTS
(In thousands of 50()..pouud gross weight balos)
~.. W.
High Plnins
W. ROlliu PI'
... . ........... .
Nortb Contr~ Pla!ns
... .. .. . .... ..
Nerth Blaok Lau alns ......... .. ..... .
k~~~~~::::~:::::::::::::::::::
Soutbcr~ p~\;f~' ........... ..... ... .
Constal PI .
.. ............ .. .. .
South 'rex alus .............. . ....... .
as .. ....... . . ............ ..
Indieated
Dee. 1,
Nev. I,
1937
1937
1,024
820
940
940
81
77
1,350
1,335
700
695
80
95
95
100
572
680
217
215
182
182
S
Total State.. .. .... .. .. .. ..
5,230
5,050
OURCE: United States Department of Agrioulture.
Fivo--yoar
70
1,008
460
66
75
282
85
109
average
1928-1032
416
749
124
1,349
775
57
108
643
210
149
2,933
4,580
Production
1986
403
~75
b Esti~nated production of cotton was raised to 280,000
. ales In Arizona and 157 000 bales in New Mexico, and the
llldicated per acre yield~ in the respective states were inc.teased to 477 and 529 pounds. In both states total produchon and per acre yields are the highest on record. Rapid
ro~ress Was made with picking and ginning in this distri~t
altIng ~ovember, with operations practical!y completed m
111 ~ectlOns except in northwest Texas, ArIzona, and New
exlCo.
b The United States crop of 18,74,6,000 bales is 768,000
ales above the previous record production in 1926, and
the record yield of 264.6 pounds per acre compares with an
average of 169.9 pounds during the ten years, 1923-1932.
f !he Department of Agriculture reported that the outlook
vegetable crops improved in November. The Lo~er
alley ~lad very little rain during the month, but WIth
cooler weather and heavy rains in the first half of December,
cro ps were making good progress. Although Iow temperatures and heavy frosts late in November damaged tender
V~getables in the Winter Garden area, the more important
WInter vegetables escaped injury. Fruit and vegetable shipments from south Texas in November, which totaled 2,345
cars, were in about the same volume as in that month last
year.
.
VI
D~sp~te further declines. i.n the prices of
1'LCome
pnnCIpal farm commodItIes, October r.eh'
ceipts from the sale of farm products m
t I~ district exceeded those of a year ago by 10 per cent,
WIng largely to the continuance of heavy marketings of
Ivestock and livestock products. Cash income from this
source
was 29 per cent hiO'her
Lhis October than last, while
rP.(' •
to
Th elpts from crops showed a gain of only 3 per cent.
f e latter increase resulted chiefly from the larger income
0m COLton in Oklahoma where last year's crop was very
short and in Texas where sales of cotton were augmented by
~ e relatively large volume of Government loans to pro. ucers under the 1937 Cotton Loan Provisions. For the first
ten months of 1937 total cash income from the sale of farm
pro~Ucts Was 17 p~r cent greater than in the corresponding
petIod of 1936.
fash Farm
r
1
RECEIPTS FROM THE SALE OF PRINCIPAL FARM PRODUCTS
(In theusands of dollars)
Reoeipts from:
Farm
crops
Ootober
~.
State
1937
lZ
Lo .ona .... . . . .. . ... . . . . $ 2,707
13,450
2,435
10,046
...... .... . 56,740
Total fivo states " $85,378
~exas ~~~~:::::::::::::
Ootober
1986
$ 2,917
10,900
2,360
6,738
53,749
Livestook and livestock produots
Oetober
1937
$ 4,092
2,336
5,982
7,874
16,998
$82,664
$37,282
BOUnCE: United States Departmenl of Agriouilure,
Oetober
1936
S 3,182
1,714
3,976
7,236
12,821
$28,929 $122,660
Livestoclc
Although ranges are poor in South Texas
and only fair in the northern Panhandle,
prospects for winter pastures are generally good in most
other sections of the Eleventh District. The light to heavy
rains which fell over most sections of the district in the
past six weeks have replenished water supplies and stimulated the growth of winter weeds and grass on the ranges.
The rains were particularly beneficial in the formerly dry
areas of south Texas where the scarcity of stock water and
pasturage had necessitated the . removal ~f some livesto?k
to other areas. In the South Plams and adjacent areas mOISture is adequate and grain pastures are furnishing good
grazing. Additional moisture is needed in the north~rn Panhandle and in portions of west Texas, New MexICO, and
Arizona.
Cattle, sheep and goats bave gone into the wirr~er in a
strong condition except in the formerly dry areas In south
Texas. The Department of Agriculture reported that f~ed
supplies are sufficient in most areas to meet usual reqUll'ements, and tllat cottonseed products are plentiful and relatively cheap. Shipments of cattle and sheep to other states
continued heavy during November, and there was a large
movement of sheep from the main sheep areas of Texas to
other sections in the State. Feeding of livestock for market
is expected to be heavy in the South Plains area of Te~as
where surplus feed crops have been produced and grazmg
conditions are generally good.
Notwithstanding substantial declines in
the prices of livestock over the past three
months, the market situation, on the
whole remained generally favorable in comparison with a
year ;go, with the result that ~arketings at Fort ~orth have
continued in large volume. WhIle November receIpts of n:ost
classes of stock were smaller than those of a month ear her,
reflecting seasonal declines in the case of. hogs and she~p,
they continued greater than a year ago, the mcreases rangmg
from 5 per cent for hogs to 120 per cent for sheep.
In contrast with the generally strong market situation
earlier in the year, livestock prices showed a downward
trend during the fall and in the first half of December were
at the lowest levels of the current marketing season. During
the period from September 1 to 0e middle of .December,
the most pronounced price dechnes were reglst~red for
slauCThter steers, yearlings, and hogs, the latter bemg currently at the lowest price since early in 1935.
Movements
and Prices
FORT WORTH LIVESTOCK RECEIPTS
(Number)
November November Change ovor
year
1937
1936
+15,976
Cattlo
........ .. .. .. .
83,820
67,844
+ 8,746
Calves .... ......... .... ·
~&g~~
969
Hogs
............... ,
8
20,146
+24,162
Shoop ........ ..... .....
44,30
m:r
Total
receipts
Oetober
1937
S 0,799
15,786
8,417
17,920
73,738
Although Government benefit payments to farmers
amounted to only $54.5,000 in October in contrast with
$7,254,,000 tin that month of 1936, total payments for the
ten months exceeded by 49 per cent .t he amount of similar payments in the same period last year.
Oetober
1936
$ 6,099
18,614
6,336
13,974
66,570
$111,593
+
October
1037
83,918
62,387
28,967
04,149
COMPARATIVE TOP LIVESTOCK PRICES
(Dellars por hundredweight)
November Novembor
1986
1037
$ 8.75
Beof stocrs
....... . ......... . .......... .. . 510.00
7.00
7.25
Stooker steors ... , ............ .. ... ........ .... .
10.00
9.00
Heifers and yearlings . . ....... . .. . ............... .
5.00
6.25
Butoher eows ...................... ..... .. .... . ..
8. 00
6.25
Calves ..... . .... . .............. · ··· .. ·· ·· .... · ..
9 .45
9.10
Hogs
......................... ... . ..
8.25
9.00
Lambs ............... .... ··· ............ . ..... ..
Change over
month
98
- 1,439
- 7,426
-19,841
Ootober
1937
112 .25
7.50
12.00
7.00
7.65
11.30
0.50
MONTHLY BUSINESS REVIEW
4
-------------------------------------------------------------------FINANCE
After the middle of November member
banks in this district increased their reserves with the Federal Reserve Bank,
and in the first half of December these
balances averaged $191,000,000, or approximately $5,000,000 greater than the average in the preceding month. As
required reserves remained at about the November level,
excess reserves rose to $46,000,000, the largest since the
final increase in required reserves became effective on May
1. Earning assets of the Federal Reserve Bank showed little
change in the thirty days ending December 15, the increase
in holdings of ,United States Government securities being
about offset by decreases in discounts for member banks and
in industrial advances. Federal Reserve note circulation
continued to decline and the total of $88,191,000 on December 15 was $2,152,000 lower than a month earlier and
$4,472,000 below the circulation at that time last year.
Operations of
the Federal Reserve Bank
CONDITION OF THE FEDERAL RESERVE BANK
(In thousands of dollars)
Deo. 15,
Doo. 15,
1937
1036
$175,854
Total cash reserves .. ........... . ..... .. . . ... . .. .. $200,632
287
6
Discounts for member banks ..... . .. . .... . . . .... .
1,360
070
Industrial advances ...... ... . .. ...... .. ..... ... .
80
87
Bills bougbt in the open market ........ : ...... . .. .
99,731
100,806
United States Government sOQurities ........ . .. . . .
None
14
All otber investments . . ..... ..... . ......... .. .. . . .
101,068
102,363
Total earning assets . . . .. ....... . .......... . ... .. .
189,606
166,852
Member bank reserve doposit'! .... . .. . . . ... .. . . ... .
02,663
88,191
Fedoral Rescrve notes in actual circulation .... ...• . .
260
402
Commitments to make industrial advances . . .• ..... .
Nov. 15,
1037
$100,072
374
1,107
80
09,461
Nono
101,022
185,662
00,343
269
Total loans and investments of weekly
reporting member banks in this district,
which had increased by about $4,0,000,000 . in the preceding five months, declined by $6,572,000 between November
10 and December 8. This decline resulted from a further
reduction in investments, principally in the holdings of
Government securities. While loans continued to expand
during the four weeks, the rate of increase was much smaller
than in the preceding five months, indicating that the seasonal demand for bank creait to finance the fall movement
of goods and commodities has about reached its peak. In
comparison with a year ago, total loans and investments
were $2,468,000 lower, as the increase of $23,921,000 in
loans has been more than offset by a decrease of $26,389,000
in investments.
Condition of
Member Banks
in Leading
Cities
Although all classes of deposits at these banks increased
CONDITION STATISTICS OF MEMBER BANKS IN LEADING CITIES
(In thousands of dollars)
Doo. 8,
Dec. 0,
Nov.l0,
1037
1936
1037
$511,322
$515,426
Total loans and investmonts .... . . .. . .. .. . . ....... . $508,854
252,707
251,331
228:876
Totallo":ns . .. . . .. . ... . . . ......... . .. . ..... . .. . . .
160,324
158,062
Commercial, industrial, and agricultural loans .... .
3,202
3,643
Open market paper .......... .. .. . .. . . . . . .... .. .
4,177
3,032
2,071
Loans to brokers and dealors in seourities ..... . .
14,668
15,822
Other loans for purchasing or oarrying seourities .. . .
"
20,841.
23,438
20,692
Real estate loans .. .... . . . . . .. .... ..... . . ... . . . .
1,100
265
1,461
Loans to banks
...... . .. . .. . ........... .. . . .
48,395
47,800
All other loans . .. .. .... . ..... .. ... ....... . . . .. .
"
187,156
178,898
185,325
United States Government direot obligations .. . .. .
43,331
27,314
28,260
Obligations fully guaranteed by United Stotes Gov't .
51,050
49,845
50,510
Other securities . . . ......... .. .. ... .. .. . . . . ...... .
107,276
lII,703
109,006
Reserve with the Federal Reserve Bank. . .... .. . .. .
187,154
143,601
163,630
Balances witb domestio banks ........ . .. . . ..... .
382,308
401,603
390,061
Demand deposits-adjustedt .. . . ...... . . ...... . • . .
121,093
127,241
126,754
Time dejloslts .. . ...... . .... . ..... .. .. . ........ .
34,125
16,020
15,012
United States Government deposits ..... . ....... . .
190,469
Interbank deposits
.......... .. . . .... . .. . . .. .. .
22~~~~
18~~~
130
Borrowings from tbe Federal Rcsorve Bank .... ... .
"Comparable figures not available.
tIncludes all demand deposits otber tban interbank and United States Governmont, less
oash items reported ns on hand or in prooess of collection.
during the four-week period, total deposits on December B
were $25,916,000 below those of a year earlier due to the
decrease in interbank deposits and in United States Government deposits. The funds made available to these banks o~er
the four weeks by the increase in deposits and by the decbne
in loans and investments were utilized to build up balances
with other domestic banks, which bad been reduced shar~ly
in the latter part of October, and to increase reserv.es With
the Federal Reserve Bank.
Following the rise to a new high level
in October, daily average gross dema~d
deposits of member banks in this distrIct
declined $4,,239,000 in November, as the fur.ther increase at
country banks was more than offset by :the decrease at reo
serve city banks. This decline resulted chiefly from a red~~
tion in the volume of country bank balances carried WI
correspondents in reserve cities. Time deposits increased
further in November and averaged $10,705,000 higher than
in the same month of 1936. Although these deposits h~ve
shown a steady growth since March this year, the major
portion of the increase occurred in the past foul' months.
Deposits of
Member Banks
GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
(Average of daily figures-in thousands of dollars)
CountryB~
Reserve City Banks
Combined Totol
Gross
demand
deposits
1936 - November .. . .. $1,007,227
December . . ..... 1,108,410
1037 - January ........ 1.094,826
February . . . .... 1,070,858
Marcb . ......... 1,051,072
April
........ 1,043,756
May .... .. .. ... 1,035,133
June: ... . .. . . . . . 1,037,335
July ............ 1,053,745
August .. . . . . . . 1,060,680
Septembcr ... . . 1,080,801
October ......... 1,110,345
November ...... 1,106,106
Time
deposits
$200,783
200,898
100,824
1P9,798
100,134
190, 683
200,293
201,800
201,803
203,704
208,581
210,461
211,488
Gross
demand
Time
deposits deposits
$627,187 $110,105
632,243
110,280
621,186 100,726
100,355
607,432
587,506 108,501
108,562
578,110
560,613
100,344
573,110
110,625
584,117
110,620
111,3 12
586,477
114,828
601, 677
613,865
116,181
605,120 117,133
Gross
Time
demand
dcposits deposita
$00,678
$470,040
00,618
476,167
90,098
473,640
OO,~!~
472,426
90,,,,,
464,376
01 .121
465,64 6
00,949
465,520
91,175
464,225
91,264
469,628
92,3~~
474,103
03,7
488,214
94 ,270
496,480
94,35 5
500,086
-----------------------------------------------------Debits to
Debits to individual accounts at banks in
Individual
principal cities of the Eleventh Distri~t,
Accounts
which had increased only moderately
.
. Septe~ber an~ Octo~er as . ~ result °d
the slowmg down m busmess and mdustnal actIvIty, showe
a smaller than seasonal decline in November. The increase
of 9.8 per cent over November last year, while larger thaI[
the similar comparison in October, was only about one.h al
as large as the average gain during the first nine month s
of 1937.
If
DEBITS TO INDIVIDUAL ACCOUNTS
(In thousands of doUars)
Percentngo
November November ohango over
year
1037
1036
$ 8,59a
Abilene .. . . ...... . ..... . $ 10,745
+25. 0
22,634
Austin. " . . . .... . .. . . . . .
28,005
+23 .7
24,361
Beaumont .. . . .. .. .... . . .
20,486
+ 18. 0
Corsicana ... . .. . .... . .. .
a,312
3,444
- 3 .8
224,017
DaUos . . . .............. .
236,598
+ 5.6
20,871
27,214
EI Pnso .. .. .... . . ...... .
0.8
85,1 62
70,710
Fort Worth ..... . . . ... .
+ 6.8
Galveston ...... . . . ..... .
32,030
31,081
+ 5.0
Houston
213,103
180,516
.... .. . .. .. ..
+ 12 .4
Port Artbur ............ .
0,304
7,611
+22 .2
Roswell. . .. ... . ....... . .
4,270
3,635
+ 17 .5
San Antonio ............ .
64,301
59,323
+
8.5
45,275
Shroveport ... .. ........ .
40,150
+ 12 .7
Texarkana- ......... . .
7,349
7,546
- 2.6
12,088
Tueson .. .. . ... ...... .
0,91 8
+21.9
12,065
12,834
.0
14,741
14,334
+
2.8
15,460
Wichita Falls ......... .. .
12,307
+ 25. 6
+
~~~~::::: :: :::::: :::: ::
+
Ootober
1037
$ 10,624
32,251
26,454
4,018
258,782
20,053
00,100
37,070
232,480
0,568
3,804
60,024
50,907
8,607
12,375
14,847
16,242
15,845
Percentagc
ohange ov,r
month
1.1
_ 13. 2
_ 7.9
_ 17. 6
_ 8. 6
2.8
_ 5.6
+
+
_ 11. 2
_ 8. 3
_ 2.8
7
_+ 0.
6.7
_ \1 .2
_ 14 .6
_ 2.3
_ 12. 7
_ 0.2
-_ 2.4
Total ...... ... $849,020
$774,362 '
+ 0.8
$022,320
- 1.8
"Includes tbo figuros of two hanlai in Texarknna ,Arkarusns, located in the Eighth District,
MONTHLY BUSINESS REVIEW
Acceptance
Although the value of outstanding accept·
Market
ances executed by banks in this district,
N
which totaled $2,904,000 at the close of
36ovember, was smaller than that of a month earlier, it was
Th per c~nt greater than the volume outstanding a year ago.
e declme from October was due entirely to a reduction in
acceptances executed against the domestic shipment and
st~rage of goods, as those supported by foreign transactions
eVIdenced a further small increase.
SaVings
Deposits
Savings deposits at 115 reporting banks
in this district, which had remained com·
b. .
paratively steady in September and Octo·
er, Increased slightly in November, and at the close of the
5
month were 2.3 per cent greater than on the corresponding
date in 1936.
Bonumont . . .... .. ..... . .
DaIl1l8 .......... . . .. . .. .
EI Paso............ .. . ..
Fort Worth
Galveston . .. : : : : : : : : : : : :
Houston
Port Arthur ::: : : :: ::::: :
Son Antonio .. ...... .. . ..
Shrevoport . ......... ... .
Waco . ...... . ...... .... .
Wiohita Falls ..... . .. .. ..
All others . . .. ... . .. .. . . .
Total .. .. .....
SAVINGS DEPOSITS
November 30, 1037
Percentage ohall~e in
savings deposits rom
Number oC Number oC Amount oC
reporting
savings
Nov.30,
savinI!'!
00t. 31,
dopositors
doposlts
banks
1086
1937
0,687 S 3,604,768 + 1.5
8
.7
+
25,910,1
92
89,391
.9
8
+ .5
8,022,735 + 9.8
2
15,568
.4
+
3
87,305
13,012,078 + 4. 9
+ .4
11,093,531 + 2.4
18,141
4
.6
71,447
28,358,559 + .6
10
+ .2
2,300,1 75 + 4.8
2
5,716
- 1.7
22,450
16,076,609 + 6. 0
5
+ .6
11,000,831 - 1.5
24,34 5
3
.1
4,060,168 - 8. 6
9,388
3
.2
+
6,771
3,386,551 - 2. 0
3
.1
+
57,104
28,801,482 + 5. 9
69
+ 1.3
-
-
115
367,348
$157,706,670
+
2.3
--.4
+
---------~-------------------------------------------------DISCOUNT RATES OHARGED BY MEMBER BANKS DURING DECEMBER, 1037
Provailing rntos:
EI Paso
Fort Worth
nato oba ed
Dallas
Fod;r~1 ~~~~~,;\~tn primo oommeroial paper suoh as is now eligiblo Cor rediscount undor tbe
&-6
Rate char od I
. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .
1* 8
1* 6
Rato On I g on oans to othor banks sccured by bills receivable . .. . ...... . .. . . . . . .. .. . . ...... .
4- 0
6
in ot~ans seo~rod by primo stook oxchango or othor ourrent collatoral (not inoluding loans plaoed
D"o'm'::~d ots througb corresponding banks):
2-4
4- 8
6
Rato chn~~o ... . " : : : :.: : : : :: : : : : : : : : :: : : : : : : :: : : : : : : : : : :: : : : :: :: ::: : :: : : : : : : :: :: : : : ::::
4- 8
4- 8
&-8
&-8
Z-8
&-8
Rato on cattleOI~~~::~.~.I~~ .~~~~r. ~~~~r.~. ~:. ~~r~h~~~~:."."~~~~: .o.t~ .. ::::: :: : :: :: : : ::: ::::::::
5- 8
6-8
&-10
Hou, ton
San Antonio
Waoo
4-6
4-7
6
4-6
3- 6
3- 6
1* 6
6-8
5- 6
5- 7
6- 8
7- 8
" 6,:.8'
3-8
6-8
-------------------------------------------------------------------------------------------------INDUSTRY
Cottonseed
Products
Cotton consumption in the United States,
Although receipts and crushings of cot· Textile
which had declined sharply in October,
tonseed and the production of products Milbing
decreased further in November to a level
th.
at cottonseed oil mills in both Texas and
f e Umted States as a whole evidenced seasonal declines 7 per cent below the average consumption in that month
rolU October to November, operations continued on an during the five preceding years. Although the 484.,819 bales
~hcerionally high level. Coincident with the harvesting of consumed in November represents a decline, of 23 per cent
arge. 1937 cotton crop the volume of seed receipts at from that of a year ago, the amount utilized during the four
xas nulls during the first four months of the current months of the current season decreased only 11 per cent
~~ason was the largest on record and 37.2 per cent in excess from the volume used in the corresponding period last year.
the total for the entire twelve months of the 1936-37 As is customary at this season, mills increased their stocks
sea~n. Crushings of cottonseed and the production of of raw cotton but holdings on November 30 were 8 per
pro ucts from August 1 to November 30 were less than ' cent below stocks on that date in 1936. However, in com·
pre'
.
VIOUS 1Y establIshed
records, but more than 50 per cent parison with average stocks on that date in other recent
years, holdings were somewhat higher.
greater than in the corresponding period last season.
r:
At all United States mills operations during the four·
COTTON CONSUMED AND ON HAND
(Bales)
November
August 1 to Novombor 80
N'ovember
1036
This senson
1937
L1I8t senson
ili,0nth period were at the highest level on record, exceeding
c ose of a year ago by about 30 per cent. Shipments of
~ttonseed products contipued in large volume. While stocks
rude oil and linters on November 30 were somewhat
h 111 er than a .y ear ago, supplies of cake and meal and
U s were smaller despite the increased production.
h: h
STATISTICS ON OOTTONSEED AND COTTONSEED PRODUOTS
United Statos
Texas
Cotton od
'
(tonsje reOOlved at mills
g~t~n.ocd·~ru8hcd· (to~8i·. ·.·. : :
(to~iocd on hand Nov. 30
l'rodu otio~ . i' .. ..
...... .... .
August 1 to Novomber 30
This season
Last som.on
August 1 to November 30
This sea,on
Last soason
l'm:~i
759,883
548,569
4,495,430
2,817,210
3,405,640
2,126,008
477,248
226,190
1,720,205
1.301,558
152,756.736
250,190
146,359
115,636
845,167,737
1,248,904
720,002
638,546
632,975,745
951,181
646,338
511.584
Crudo oil (~~~cb)ots:
Cake lind
I ( .... .. .. . 241,301,051
Jiulls (tons')on tons) . .. . .. .
390,692
210,521
S LInters (ru .: . . i; .. .. .. .. .
173.191
tOCks On ha~dl:'fc ales) ... .
Crudo oil (POun~)' 30:
Cake and onI ... ..... . 28,247,140
68,042
~ulls (tonsi (to9") . .. .. ..
54,512
LlDtors (ru : ............ .
SOUR nmng bales) . .. .
86,001
OE: Buroau oC Consus.
20,223,320
81,347
63,302
52.668
88,518,795
169,107
116.090 .
319.189
62,105,004
211,241
145,080
165,505
Ootton-growing stotos:
Cotton oonsumod . ... .. ..
Cotton on hand Nov. 30 inConsuming establishments
Publio storago and oom·
pressos ..... .. . . .. .... .
United States:
Cotton oonsumod
Cotton on hand N0;.'30 i~':':'
Consuming establishmont.
Publio storngo and com·
prosses .. .. ... .. . ... ...
SOUROE: Buronu oC Census.
418,305
484,819
526,612
625,704
1,885,470
2,079,928
1,408,140
1,584,285
11,476,374
8,325,505
2,217,500
2,481.661
1,656,100
11:5;t~4~
1,800,507
8,386,166
Reflecting the decline in ginnings and
the large amoun't of cotton placed in the
Government loan, most of which is stored
in inland warehouses, receipts of cotton at Houston and
Galveston declined 46 per cent from October to November
and were 28 per cent smaller than in November last year.
Combined exports from these ports, while 7 per cent below
October shipments, were 10 per cent above those in Novem·
Cotton
Movements
MONTHLY BUSINESS REVIEW
6
ber, 1936, and for the four months of the 1937-1938 season
' they were 3 per cent larger.
Exports of co:t;ton from the United States aggregated
796,985 bales in November, which is about the same as in
the preceding month but 15.5 per cent larger than in the
corresponding month last year. Although exports in the
first four months of !!he current season exceeded those in the
same period last season by 6 per cent, they were 17 per
cent unde,r the 1927-1936 average exports for that period.
For several years Japan has been the leading importer of
American cotton, but exports to that country have been very
small this season on account' of the restrictions placed upon
the importation of cotton by the Japanese Government.
However, increased exports to other countries have more
than offset this decline.
Spot cotton prices, which had declined to the lowest level
in four years early in November, strengthened somewhat in
the subsequent five weeks. The price of middling, % inch
staple, at ten spot markets averaged 8.20 cents per pound on
December 15, which compares with a low of 7.65 cents per
pound on November 5.
COTTON MOVEMENTS THROUGH THE PORT
(Bales)
Novemoor
November
1936
1937
267,947
383,870
Receipts
.............. .. .
241,983
225,497
Exports . .. ...... ..... ... . . . .
Stocks, November 30 ........ .
OF GALVESTON
934,109
987,089
COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON
(Bales)
November
AuguBt 1 to Nov.mber 30
November
1936
This senson
Last Beason
1937
1,227,172
985,298
209,397
278,956
Receipts
............ .. . ..
607,142
536,276
205,401
180.829
Experts ...... .. ....... . .... .
829,756
606,872
Stocks, November 30 . . .. . .. .
SEASON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT ALL
UNITED STATES PORTS-(Bales}
AuguBt 1 to November 30
This season
Last Beason
4,548,380
Recoipts ...... . ....................... ... . . ........ .... . 4,988,952
743,793
466,548
Exports: Unitod Kingdom ....... .. .. ..... . .. . .... . ...... .
412,556
368,871
France .. . . ..... .... .... .... . ... .... .... ....... .
218,142
111,592
Italy ............ .. ............. . ..... . ... . . .
398,606
286,922
Germany .... . ..... . . .. ......... . . . . ..... . . ... .
383,362
278,670
Other Europo ... . .. ... . .. . ..... .... .. ..... .... . .
83,907
662,772
Japan .......... ..... . .. .. . .. .. .... . ......... .
193,399
127,567
All othor countries .......... .. . . .. .. ......... .
Total exports. . . . . . . . . . . .. . . . . . . .. . . . . . . .. . . . . . . . . . . .. . . .
Stocks held at aU Unitod States ports, November 30. . . . ..... .
2,433,765
3,305,172
SPOT COTTON PRlCE8-(Middling basiB}
(Cent. per pound)
November, 1937
New York . . ... .. . . ........... . ....... .. ..
New Orleans .......................... . ..
DaUas .......................... . ........ .
HouBton
..... .... .. ... ... . .. ......... ..
Galvoston . . .. . ... .. . . ..... .. .. ........... .
Petroleum
High
8:22
8.26
7.62
8.00
7.97
OIL PRODUCTION
(Barrel.)
North Texas ........... .. . ..
West Texns
East Texas .. :::::: : :: :::::::
South Texas ... .. ....... . . ...
Toxl\8 Coastal . . . . . . . . . . . .
Total
4,315,500
7,011,950
16,984,700
7,416,100
5,965,700
Daily Avg.
144,850
233,732
566,157
247,203
198,856
- 304,650
- 730,750
- 1,394,500
761,250
-- 5\0,150
Total Texas ... . •. .
New Moxico . .............. . .
North Louisiana
41,723,950
3,140,650
2,175,800
1,390,798
104,688
72,527
--
47,040,400
1,568,013
-3,979,450
.
Low
7.79
7.73
7.09
7.50
7.48
2,302,942
3,019,331
Dca. 15,
1987
8.29
8.31
7.69
8.14
8.08
Proration officials reduced production ailowables further in November and ordered a cessation of operati9ns in the East Texas field for four
'rotal
-3,701,300
97,000
181,150
NOVEMBER DRILLING RESULTS
Number of wells
Completion.
290
North Texas .. ... . .... . . .......
295
West Texas
381
East Toxas .. :: : :: : :::::::::::::
343
South Texas . . .. . . ... . . ... . .....
139
'I'exas Coastal ....... ..... ....
Total Texas . . .... .....
New Mexico . . ....... . .... .... ..
North Louisiana
. ............
1,448
57
'59
-
Inorease or deoreMe from
October, 1037
Novomber, 1937
Total District
August 1 to Novomber 30
This season
Last season
1,304,611
1,324,072
667,482
699,178
934,109
987,089
COTTON-GALVESTON STOCK STATEMENT
(Bales)
November 30, November ao,
1936
1937
8,500
13,600
For Great Britain . ...... . .......... .. ........... : .... .. . .
8,000
25,500
For France . . . .... .... .... . .. . .......... . . ...... ... .. .. ·.
64,600
40,000
For other foreign ports ... .. . ........... ..... ..... . ...... .
1,000
4,000
For coastwiso ports ............... ... .. .. .... ........ .... .
876,609
879,389
In compresses and depots
.... .... ........... . . ........ .
Total. . ....... ....... . .... .. . .. ..... ......... .
consecutive Sundays, with the result that production of
crude oil in this district declined substantially in Novem~er
and the forepart of December. Daily average output dunng
the week ended December 11 amounted to 1, 491,525 barrels,
which is 14 per cent below the record high rate established
in August but still 9 per cent above the daily average for
December last year. During November there were some
withdrawals of crude oil from storage, indicating that pro'
duction was below market requirements.
.
The daily average number 'of wells completed in t~IS
district during the five weeks ended November 27, while
. somewhat smaller than during the preceding four·we ek
period, was about the same as the average for the first eleven
months of 1937.
Producers
205
240
360
247
114
Gas
Well.
15
8
4
23
4
1,166
52
36
54
1
13
1,254
>N ovembcr totalB, diBtriot .. . . . . .. 1,564
68
1,065
fOotober totals, distriot . .... ... . . . 1,347
43
>November figuros ropresent five weeks ended November 27, 1937.
tOotober figures ropresent four weaks ended Ootoher 23, 1037.
CRUDE OIL PRICES
(Prioe por barrol)
North and wesl-cenlral Texas ...................... , •.. ...
E,.,t-central Toxas .. ................. . .. ... ..... . .. .. .. .. .
Texas Gulf coast. ......... . . . .. . .. . . . .... .... .. ..... .. . . .
West tl'cxn.s-Ncw Mexico .... , .... . ... .... ....... .. ...... .
North LouiBiana ..... . ..... .. ......... .. . . ... . .... . . .. ... .
NOTE: Prioos quoted apply to oil 40 gravity and above.
>Pricos for n comparable grade of oil not available.
SOURCE: The Oil Weekly, Houston, Texas.
Failures
70
47
17
73
21
228
4
\0
242
280
Daily Avg.
_ '5,155
_ 16,033
_26,721
- 16,582
_ 10,042
-
_ 74,533
+ 248
_ 3,504
_ 77,780
Initial
produol ion
(barrel.
daily)
74,671
219,683
1,528 , 78~
-
105,19
52,262
1 980,002
' 38,362
20,100
2,039,06:
1,833,13
November 80, Nov.robor SO,
1936
1037
$1.08
U .20
I. ~5
1.27
1.41
1.08
J.10
1.22
-----------------------------------------------------Building
The value of construction contracts
awarded in the Eleventh District aggregated $15,027,000 in November, which, with the excepti~n
of August this year, is the largest monthly total since Aprtl,
1936. The heavy volume is attributable chiefly to the l~rge
awards for public works and public utility constructiOn,
although awards for non· residential building also increased.
On the other hand, residential building declined for' the
VALUE OF CONSTRUCTION CONTRACTS AWARDED
(In IhouBand. of dollars)
be SO
November Novombor
Ootober January 1 to Novem 6 r
1937
193
1937
1986
1937
Eleventh Distriot-total... S 15,027
$ 7,564
, 11,771
$ 132,653 $ I~~'~~~
Residential. . .. ..... .. .
2,933
3,017
3,374
44,453
80'S38
All other. . . .. . . . . . . . . .
12,094
4,547
8,397
88,200
' 4
Unitod Statos>-tolal . . . . .
108,465
208,204
202,081
2,745,510
2,4S686'~~4
Rosidential . . . . . . . . . . . .
60,001
68,441
65,485
869966·
7, 00
1,875;544
1,731,8
All other. . . . . . . . . . . . . .
138,464
139,763
136,596
>37 Btatos east of the Rooky Mountains.
SOURCE: F. W. Dodge Corporation.
MONTHLY BUSINESS REVIEW
thih~ d consecutive
. month, and the value of November awards,
t
IC~ w~s 46 per cent below the recovery high point reached
ast
pnl, dropped to the lowest level since early in 1936.
l' In contrast with the increase in the total value of construc-
-
IOn Contracts awarded in this district, the valuation of build-
Amarillo
Au8tin . .···· .. · · ··· .
Beaumont···· .. · ··· .
CO rr,U8 eh' : 't: .......
Dal .... ..... 1. ... '"
EIP..o ..........
Fort Worth'" ... . . ..
Gal vcsto
........
Booston n . .... ......
Port Arth .. ....
San Anto ~r ......
ShrovopO~'o ... . .... .
Wnco
..........
Wiohita 'Falis::: :::: :
I
f
ing permits issued at fourteen principal cities, which declined 16.2 per cent from the preceding month, followed the
usual trend at this season. The! value of permits issued during November totaled $3,339,295, which is the smallest volume for any month since December, 1935.
BUILDING PERMITS
November. 1037
-
7
00
•
00
•
No. Valuation
25 $ 73,500
142
321,170
121
47,038
132
195,078
443
615,706
69
83,850
128
188,788
125
221,070
409 1,080,250
108
41,913
256
223,374
120
146,443
38
68,177
17
32,014
--
Total. .... 2,133 $3,330,205
Novembor. 1936
No. Valuation
24 $ 45,777
114
256,172
51,784
117
120
204,245
414
351,386
81,162
74
185
434,738
60,664
04
348 1,302,445
40,725
110
380,458
216
231,399
113
31
01,180
25
0,143
2,000 $3,541,273
Percentage change
valuation
over yenr
+ 00.0
+ 25.4
7.4
4.5
+ 75 .2
+ 3.3
- 56.6
+264.4
- 17 .1
+ 2.9
- 41.3
- 86.7
- 25 .2
+250 .1
-
-
5.7
Octobor, 1037
No. Valuation
40 $ 122,370
343,360
211
56,244
151
180,195
130
650,814
543
383,241
66
387,161
164
00,356
157
399 1,144,090
64,837
148
259,472
270
228,177
132
63,763
34
10,287
22
2,476 $3,985,273
Pereentage ohange
valuation
over month
- 30 .0
6.5
- 14.8
8.3
+
5.4
- 78 .1
- 51.2
+ 144 .7
5.7
- 35.4
- 13.0
- 35.8
+ 6.9
+211.2
-
-
-
16 .2
January 1 to Novembor 30
1036
1037
Vnluation
No.
Valuation
No.
333 $ 1,100,855
375 $ 1,120,802
1,726 4,176,573
1,741 3,719,835
004,986 1,303 1,022,654
1,604
1,253 2,577,124
1,634 3,105,305
5,363 0,043,836
4,030 6,054,504
800,012
717
010 1,424,396
1,081 7,911,355
1,041 6,813,211
1,203 1,501,069
1,230 3,520,048
4,411 17,120,255 4,214 17,116,877
853,755
1,635
859,160 1,524
2,712 4,151,447
2,032 4,159,523
1,436 2,382,793
1,408 2,743,751
703,346
402
507 1,151,474
290,050
212
347,121
196
25,453 $53,495,480
24,309 $53,778,817
Percentage obango
valuation
over period
+ 1.8
- 10 .0
2.7
+ 20.5
- 23 .1
+ 60 .0
- 20.2
+ 185. 1
.01
+
.6
+
.2
+
+ 15 .1
+ 63 .7
- 13.8
-
.5
MONTHLY BUSINESS REVIEW
8
SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Compiled by the Board of Governors of the Federal Reserve System)
...
-
INDUSTRIAL PRODUCTION
,
.to
150
'30
A
120
\
ItO
100
r
~
'\
'V
V
\.
10
1\ t'1V
eo
eo
110
III
A
1\ 1/\
\
10
.0
.to
~
10
00
Index of physical volume of production, adjusted
for seasonal variation, 1923-1925 average
100.
By months, January, 1929, to November, 1937.
=
FACTORY EMPLOYMENT AND PAYROLLS
'''I''''
tlO
itO
'00
"fiCIN'
•ZQ
•'0
.... "
!r'1
' J:u.. •
"\
'0
~
'0
, I
Emp10vmenl
'\ V 1.1
to
GO
'0
\II. I
40
eo
10
I
PoyrOIl'_,\
eo
f\.,
.nt
.m
11)2
ItSI
00
00
80
...rV
I
:,."
10
J
/:
"I'-... VV .J
40
In.
'933
II)'
II)'
1m
IndexeR of number employed and payrolls, without adj ustment for seasonal variation, 1928-1925
average
100. By montha, J an u a ry, 1929, to
November, 1937. Indexes compiled by the United
States Bureau of Labor Statistics.
=
WHOL.ESALE PRICES
',"CCHT
PIA aN
I: T
•20
' 20
110
I '0
.00
•00
90
~
...
~
80
[,./'
'\...
70
""""
60
eo
19~
192&
1831
1932
/
'"
90
80
10
80
1933
1934
19"
1$136
1~7
Index compiled by the United States Bureau of
Labor Statistics, 1926
100. By months, 1929 to
1931 ; by weeks, 1982 to date. Latest figure is for
week ending December 18, 1937.
=
MEMBER BANK CREDIT
'11WONSO'DCIU.NII
.. I."..,
"
O.fMtldDtpOlit• •
AdI~1ttd . / "
,....,...
. . ,'11. .11"'.,'./f"t../'I M.
ToIoIL_ .
.I"'l
...-I
::i~~. r--f-tDhd"~
/
t-_~-'uolS
F<~- ~
~
~
183~
--
~
1836
1131
"
>0
..t-./
Tota l~
U,sC'.IM Dt9aIIII
"""'-1"
l""5:....
."
"
34
IG3S
.."
.."
W ednesday figures for reporting member banks in
101 leading cities. September 5, 1934, to
December 15, 1937.
In November, volume of industrial production continued to decline sharply,
and employment and payrolls also decreased. During the first half of November
commodity prices declined !further, but for the past month they have been steady,
:PRODUCTION AND EMPLOYMENT
Volume of industrial output, as measured by the Board's seasonally adjusted
index, declined from 103 per cent of the 1923-1925 average in October to 90
cent in November, reflecting chiefly a sharp reduction in the manufacture 0
durable goods. There was a further curtailment of activity at steel mills and output
for the month was at a rate of 38 per cent of capacity, a decline of one-third fl'°2~
October. In the first three weeks of ,December steel production was at abo u.t
pel' cent of capacity. Output of lumber and plate glass also declined substantlall)
in November, and automobile production showed considerably less than the usua
seasonal increase. Production of nondurable goods, which had decreased .by a
substantial amount earlier this year, declined further in November" reflectmg a
continued reduction in output of textiles and shoes, partly offset in the total bY
an increase in activity at sugar refineries. Output CYf minerals, as well as ma?Ufactures, declined in November. There were marked decreases in output of ,ln tu minous coal and in iron ore shipments, while crude petroleum production contmued
in large volume.
Total value of construction contracts awarded, as reported by the F. W. Dodg~
Corporation, showed little change in November and the first half of Decembe I .
Awards for privately-financed projects declined, reflecting chiefly a further reduCtion in residential building, while contracts for publicly-financed work increased.
Employment and payrolls at factories showed an unusually sharp decline between the middle of October and the middle of November, and there were decreaTh
ses
also in the number employed in trade and other non-manufacturing lines.
e
Board's seasonally adjusted index of factory employment was 'a t 94 per cent of
the 1923-1925 average in November as compared with a level of 10'2 last summer
and 96 in November last year. In the steel, machinery, lumber, and textile indUStries the number employed decreased by substantially more than the usual seasonal amount, and there was some decline at automobile factories, althoug'h a11
increase is usual at this season. There were declines also in the seasonally a djusted indexes !for most other lines, except foods 'a nd tobacco which showed little
change.
AGRICULTURE
Department of Agriculture estimates recently issued indicate that most ~roPbs
will be about the same size as forecast earlier but that cash farm income WIJl e
lower than had been anticipated, largely because of price declines both for croPd
and livestock. Cash income in 1937 is expected to be $8,50'0',0'0'0',0')00', as compal:e
with $7,918,0'0'0',0'0'0' in 1936. The increase over a year ago is due primarily to m;
creased income from marketings of 'wheat, tobacco, and fruits and to large
Government payments.
DISTRIBUTION
Distribution of commodities to consumers, which earlier had been maintainedi
declined slightly in November. There was a slight decline in sales at departm e11
stores, and mail-order sales decreased considerably, while sales at variety S~Ol&S
showed little change. Preliminary information for the first half of December In
cates that department store sales increased by approximately the usual seasona
amount.
Freight-car loadings declined by considerably more than the seasonal amouni
in November and the Board's adjusted index for that month was 71 per cent °e
the 1923-1925 average as compared with 76 per cent in October and an averag l.
of 81 per cent in the first half of the year. The decline from October to Novem be
reflected principally marked decreases in loadings , of coal and misceJlaneoUil
freight.
COMMODITY PRICES
The general level of wholesale commodity prices, which had declined sha!pl~
from the latter part of September to the third week of November, has shown b ttl s
change since that time. Prices of non-ferrous metals, leather, wool, textile yab4e
and finished cotton goods haVe! declined somewhat further in this period, w I
steel scrap, hides, rubber, cotton, print cloths, and bituminous coal have recentlY
shown some advance .
BANK CREDIT
t
Excess reserves of member banks sho'wed a small decline but for the fir~
three weeks of December remained somewhat over $1,0'0'0',0'0'0',0'0'0'. The increase. J11
demand for currency during December has been smaller than usual, reflectJng
largely the effects of the recent sharp decline in business activity and payrolls.
Total loans and investments of reporting member banks in 10'1 leading citie:
increased somewhat during the foul' weeks ending December 15, reflecti~g
growth of $190',0'0'0',0'0'0' in holdings of United States Government obligatIons;
mostly in New York City. A factor in this increase was the purchase by bankS Od
the December 15 issues of G.overnment securities. Commercial loans, which ha
begun to decline in October showed a further reduction.
pei
i
SUPPLEMENT TO THE
MONTHLY BUSINESS REVIEW
OF THE
FEDERAL RESERVE
JANUARY
B~(
OF DALLAS
1, 1938
REVISION OF INDEXES OF DEPARTMENT STORE SALES
f ~he Federal Reserve Bank of Dallas has revised its indexes
o.. epartment store sales for the Eleventh District. The reVISIOn i~ !!he unadjusted index gives effect ,to changes in the
:l~~~lymg data resulting from the inclusion of figures for
h Ihonal firms to replace the figures of those firms that
thV~ discontinued ' business. During the period covered by
t' e mdexes there have been noticeable shifts in the prop or.10n of business transacted in various seasons. The most
17portant changes have been the increases in the proportion
sales ~ade in August, September, and December, and
ecreases m the pr?por~ion made in January, June, October,
d
and November. To make allowance for these shifts during
the years in which they were occurring, new seasonal adjustment factors were computed for the entire period.
The method used to obtain the adjustment factors is similar
to that employed by the Board of Governors of the Federal
Reserve System for measuring seasonal variations of a changing character .
The unadjusted and adjusted indexes and seasonal adjustment factors of department store sales for the period 1919 to
date are shown in the appended tables.
DEPARTMENT STORE SALES, ELEVENTH FEDERAL RESERVE DISTRICT
(Index numbers based on daily averages of dollar volume of sales', 1923·25-100)
Month
Without seasonal adjustment:
~~b~~~;""
March y .. . ." . .""
.....
~ril
............
i~7.:· :·;;;; :;;~;:: :
Sept"~b'e'r' .. . , . . . .
Ootob
........ .
N
el; ..........
D~vcmb er . ........
cem cr . ... .....
Yearly nvernge .. .
Adj
v :~et1on .for
senBonal
January
Februar· ······· . ..
Maroh y ..........
~ril
.. . ...... . ..
Ju~y::::::::::: : : :
Jul;············ · .
Au~ 't' " . ... . ....
SepDte~b""" " " .
Ootoh er .........
Novc~~)~~"" "" .
December: : : : : : : : :
--
1936
1937
79.0 74.8 55.6 45 .2 57.6 61.5
90.6 81.8 61.2 48.6 66.2 70.3
97.0 89 . 5 65 .4 51.6 81.1 81.3
103.9 94.9 65.7 66.7 76.6 81.8
104.1 96 .0 65 .9 64.4 78.1 79,7
90.5 80.0 56.0 55.2 68.3 75.2
68 .6 58.7 41.9 47.9 53 .7 59.2
76.5 65.7 45 . 6 58.6 59 . 5 64.4
109.7 80.6 74.0 68.5 91.9 98.3
111 . 7 89.1 78.2 82.0 86.4 93.2
114 .5 91.6 70.3 77.6 93.3 99.1
157.4 130.8 101.4 128 .5 147.4 157 .3
70 . 1
77.9
88.0
91.3
96 . 5
93.0
72 .2
78.6
111.0
123.3
115.0
178.9
80 .6
90.4
99. 6
101.8
107.2
94.3
74.7
86.2
122.1
124.1
121.5
80 .9
82.7
87.4
81.0
79.7
84.5
84.6
83.6
88.6
82.5
88 . 5
90.9
92.2
91.6
92 . 6
92.2
96.5
104.5
103 . 1
102.1
100.0
100.1
102.7
103.4
106.1
106.4
101.6
106.0
107 .2
106.0
106.7
111.9
110 .0
109.8
108.6
1924
1925
1926
1927
1928
1929
1930
83.0
80.4
89 . 8
96.7
103.2
94 .4
69.4
67 . 1
114. 3
115.2
118.2
164.0
89.2
93.2
102.0
102 . 5
107.6
92.8
69.7
72.3
105.5
125.7
117 . 3
171 .4
93.2
95.5
101.2
101.7
114.5
101.3
75.0
85.4
112.4
125.5
123.9
177.4
88.7
91.6
99.3
108.3
115.1
93.6
71 . 8
76.2
108.0
123.5
123.0
187.6
90.8
89.8
103.9
104.6
114.0
97.5
73.8
76.1
119.0
118.7
129 . 7
191.0
88.8
90.8
113 .9
103.9
]]3. 3
09.9
73 .7
80 .3
117.8
122. 1
132.7
184 .9
89.1 91.9 96.5 103 ,7
90.8 91.1 95.7 109.6
89.1 92.9 95.5 106.3
89.1 96.2 97.7 104.6
90 .1 99.2 99 .2 108.5
89.5 94.3 99 .4 99.8
90.4 96.6 99.1 101.0
90.7 93.9 97.2 104.8
96.5 100.7 100.8 98.6
87.5 98.6 99.3 108.4
90.8 98 .4 101.9 101.1
94.1 98.3 102.5 106.5
108.4
112.4
103.3
105.9
109. 0
112.6
110.3
128 .8
105.0
108.2
106.8
108.2
105 .6
107.8
105 . 6
108.3
109.6
105 .2
107.2
110.4
100.9
107.4
106 .8
111.0
110.7
105.6
107.1
107.8
108 .6
109.6
110.1
108.7
111.0
105.0
110.9
112.4
112.4
106.8
115.1
109.4
110.0
112.2
110.0
108.5
108.1
108 . 1
113.4
108.8
102.6
105.3
104.3
103 .9
102.1
101.7
102 . 4
100.7
99.7
98.8
97.9
92.6
1919
1920
1921
1922
1923
76.9
73.8
95 . 5
88.3
89.9
91.5
70.2
72 .0
107.1
111.9
127.6
175.1
101.6
97.3
126.4
115.8
125.2
114.2
88.0
87.0
117 .8
133 .0
140.2
173 .5
93 . 0
92.3
104.8
95.0
104.2
96.0
71.5
65.1
91.7
110.2
105.1
144.8
75.7
76 .3
83.8
88.2
93.7
85.0
65.1
62 .6
102.3
101.5
105.3
150.6
78.1
76 .5
92.0
90.4
103. 2
89.6
68.6
64.8
107,8
114.4
114.1
157. 3
90 .5
87.9
101.6
89.2
87.3
95.3
96.2
102.9
103.0
96.5
110.0
109.3
119.5
115.8
129.0
121.9
121.6
119.0
120.5
124.3
113.3
114.7
120.9
108.4
109.4
109.9
105.9
101.1
101. 2
100.0
97.9
93.0
88.2
95.0
90.6
90.6
----------
1931
1932
1933
1934
1935
- - - - - - - - - - - - - -- - - - - -- - - - -- -
-
.... ..
------ -80- - - - - - - - - -66.2
----- -99.6
-98-- - - - -96.4
.0 85.1 99 .7
65.1
86.
1
100.3
110
.
2
109.2
107.3
108
.9
104
.1
. 3 118.3 97.8 90.8
- - - - - - - - - - - - - - - - - - - - - -- - - - - --98.4
95.1
93.2
97.8
05.0
89.9
87.6
85.3
72.6
78 .8
78.3
76.9
73 .2
71.2
67.4
68.4
65.9
62.9
61.6
59.2
66 .7
69.2
60.6
59 .3
59.5
57.2
56.1
66.0
64.4
62.0
68.4
76 . 1
61.7
72.6
68.7
74.3
75 .8
77.9
82.8
79.8
78.1
76.7
76.7
77.3
82.8
76,5
83.3
85.2
......
nnd fOTfE: The daily average sales are computed on the basis of the number of business days; allowance is made for the number of Sundays
or our holidays : New Year's Day, Independence Day, Thanksgiving Day, and Christmas.
SEASONAL ADJUSTMENT FACTORS FOR INDEX OF DEPARTMENT STORE SALES
_______________~.---~--~--~----~--~--~(A~v-e~r~
ag~e-f-o-r~y-ea-r-==-I,O-O~)_.----,_--,---_,--_.----,_--,_--_,--_.---_ _ _ Month
~
~
rvrAearil{;.:.~.
• :.' :. :. .: :..: '. .: :. '. :..: :. :.
ay
...
June ' ... " .. :::::::::
July" . . . . . . . . . . . . . . . . .
Aug ·t· ···· ..
Sept': b" ... , ' ....... ,
OotOhm er .. .. . . .......
.' .'. :' . . : .. :. :...... :.' : :
DNoecveem~bbe·er~.:
1919
1920
1921
1922
1923
1924
1925
1926
1927
1928
1929
1930
19B1
1932
1933
1934
1935
1936
1937
84
~
90
103
96
73
70
104
116
116
160
84
M
95
103
96
73
70
104
116
116
160
84
W
94
103
96
73
70
104
116
116
160
84
~
99
104
95
72
69
106
116
116
160
84
W
94
104
95
71
69
107
116
116
160
84
~
99
104
95
70
69
107
116
116
160
85
00
98
104
93
69
69
107
116
116
161
85
M
96
105
90
68
60
107
116,
116
164
85
~
100
105
89
67
69
107
115
116
169
85
~
97
105
89
67
70
108
113
117
170
85
W
95
103
89
67
74
109
113
117
170
86
ro
100
102
89
67
76
110
113
117
170
86
00
07
101
89
67
77
111
113
117
170
86
~
96
100
89
68
77
111
113
116
171
85
~
101
100
89
70
77
111
113
113
173
85
M
06
100
80
70
77
111
113
112
173
85
ro
101
100
89
70
77
III
113
112
173
85
00
99
100
89
70
77
III
113
112
173
85
M
96
100
89
70
77
111
113
112
173
~~~~~~~~~~~~~~~~~~~
-----~------~--L-~L-~--~---L--~--~--L-~--~---L--~--~~~~~~--~--~-*Include adjustments for effect of changes in the date of Easter.
@FedFRASER